Perfect. We've got about 60 people in here right now, so I'm going to kick off just in the interest of time. Good afternoon, everyone. My name is Peter Graham, and I head up the Cannabis Investment Banking Initiatives at Ventum Capital Markets. I'd like to extend a sincere thank you to all of our presenters today and also our investors for attending our virtual Canadian Cannabis Conference. We are thrilled with our lineup of the emerging leaders in the Canadian cannabis market and beyond. I'm eager to hear their views, not just on their businesses, but also on the industry as a whole. Although we've seen volatility in the Canadian cannabis markets for the past number of years, the macro trends have continued to illustrate a large and significant industry that really isn't going anywhere.
With that volatility, it's been lost that several of the leading operators, most of whom we've been fortunate enough to gather here today, have shown operational excellence in an incredibly competitive environment, and that excellence has started to reflect in strong financial results and profitability, which is a trend we can expect to continue going forward. Our goal really for this conference is to highlight these emerging leaders and provide them an avenue to illustrate how they've achieved these impressive results and what opportunities lie ahead for them. With that, I'll turn it over to Ventum's Cannabis Research Analyst, Andrew Semple, who will be moderating today's conference. Andrew, over to you.
Thank you very much, Peter. Like Peter mentioned, I'm Andrew Semple. I cover the Canadian cannabis industry and the cannabis industry more broadly and have done so here at Ventum since 2018. I'm very glad to have the opportunity today to host several companies that I believe are competitive, innovative, and frankly, successful in the Canadian cannabis business. I thank you all for attending, and I look forward to our discussion today. The format of the event will be 20-minute time slots for each business, in which we will have a 15-minute corporate presentation followed by a brief five-minute Q&A session before moving on to the next participant. Our first presenter today will be High Tide , Canada's largest cannabis producer and a top pick for Ventum Financial.
The company has seen tremendous success in the Canadian market, utilizing its unique discount club strategy to win market share and retain loyal customers. Over the past four years, since I've covered the business, High Tide has grown quarterly sales from approximately CAD 20 million to nearly CAD 140 million, an increase of nearly seven-fold over that time period. I'm very pleased to welcome Vahan Ajamian, Head of Capital Markets at High Tide, to kick off our conference today and to tell us more about this amazing business. Vahan, over to you.
Perfect. Thank you so very much. Vahan Ajamian, Capital Markets Advisor at High Tide. I've been with the company for a little over four years now. When I joined, we were just over 30 stores. Now we're at 194. Thank you so much for Andrew, Peter, and the broader Ventum team. Thank you so much for dialing in to join the presentation. I have a few minutes to kind of go through the highlights. If I can share my screen and send a request. Yeah, I'll go through the highlights quickly and leave some time for some Q&A. We're good to go with the screen. We can see it.
Yes, we're good.
Okay, perfect. A big picture on the company and sort of the stock profile of High Tide Inc., ticker HITI on the TSX Venture and on the NASDAQ, also trading on the Frankfurt Exchange. Market cap is about CAD 268 million. These are all Canadian. We're a Canadian company. Total debt is only CAD 26 million. Very manageable. We'll get to that in a minute. Stock trades regularly to about two and a half, sometimes more, million dollars worth a day. Trading revenue, we have a Halloween year-end, so the numbers will be going over for the latest quarter or fiscal year ending October 31st. The January quarter will be out actually next week. It'll be out Monday after the market closed with the call with the analysts on Tuesday morning.
Trading revenue, so for the fiscal year ended October 31st, it was CAD 522 million, which puts the company at a very attractive 0.5 x trailing sales, never mind all the obvious growth ahead, and just 6.7 x trailing EBITDA. One of the hallmarks of the company and things we're really proud of is our free cash flow profile, which again, last fiscal year was CAD 22 million, which translates to a trailing free cash flow yield of 9%, which I think is very attractive, especially in an environment where interest rates are falling like the other 25 basis cut that we saw just this morning. Obviously, our core is brick and mortar cannabis retail. We have 194 stores across the country. In B.C. , we're at eight, which is currently the cap that any one operator can have in the province.
We're optimistic that it'll go up to 12 and then 16. In Alberta, which is where the company is based, we have 84. Saskatchewan and Manitoba, 12 and 11. In Ontario, where we have probably the largest opportunity for growth and our most profitable stores, we have 79. The cap is now 150. There's another 71 stores we can put up in Canada's largest province. In terms of the value proposition for shareholders, as mentioned, we're a leading specialty retailer of cannabis. We don't grow, we don't process. We are strictly downstream in that retail direct-to-consumer edge of the market, which has been our niche, and we've been able to, frankly, form a very strong leadership position. We have the widest footprint, as mentioned, 194 stores. That makes us number one in Canada and number two anywhere. To just truly, even in the United States, it has more outlets.
Our average store generates 2.2 x the revenue versus our peers. Our performance is really striking if you look at our same-store sales, whereas in the past three years, our same-store sales are up 130% in a very competitive environment where the average operator is down 5% during this period. We have 11% market share. While we are the largest, it is still relatively low, and we see room for upside, especially in Ontario, where, as I mentioned, we plan to approximately double our store count. We have the Cabana Club, which is our loyalty plan and really one of the main pillars of our success. We have 1.72 million loyalty plan members in Canada, of which 73,000 are elite members. They pay for shopping in our stores and get—we will get to it—but get even steeper discounts and promotions, etc. Revenue per square foot last quarter was CAD 1,699.
Very impressive metric when compared to other blue-chip retailers like Walmart, like Target, etc. Trading revenues up 46% the last two years. The balance sheet is very strong. As mentioned, our gross debt to trailing EBITDA is less than one time. We are actually in a net cash position. Our trailing EBITDA is up 162% over the past two years. Taking a look quickly at our stores, if you have not been to any of them, you can see that we have a very open shoppable layout. Unlike other stores where you might walk in and all you see is three TV screens with a menu of strain names and some numbers showing the price and the potency of that strain, that often does not help consumers. We are a very inviting environment. You can walk in, you can actually see the product, you can get help.
All four walls are surrounded by accessories, which is our kind of bread and butter and the original DNA is when the company was formed. Target size is about 1,200-1,500 sq ft. Average store has about 500 SKUs of cannabis products. The discount club model or Cabana Club loyalty plan is really, as mentioned, one of the hallmarks of how and why we've done so well. It launched in October 2021. A customer walks into our store, and they typically see two or three prices. You walk in, for example, for this product, Blueberry, the market price, the price at which this product prevails in the market is CAD 104.99. The member price, if you're a member of the Cabana Club discount model, it's CAD 74.95. It's typically 10%-25% cheaper for cannabis.
And accessories, where we're vertical and we have 5,000 of our own SKUs, it can be up to 60%-70%-80%. Now, this base level membership is free. You have to give us your phone number, your email address, your name, your postal code so we can send you promotions, etc. The base level membership is free. Given the steep discounts of 10%-25% off cannabis, almost everybody signs up, and our members drive 90%-95% of our daily transactions. A few years ago, we introduced ELITE, which is the paid tier, which is now CAD 35 a year, all paid upfront, where you get even steeper discounts and exclusive access to promotions, limited availabilities, and so on. The discount club model has been a massive success. As mentioned, it was launched here in October 2021.
Over the ensuing three years, you can see it's now up to over 1.72 million members as of January 29th, up 34% year-over-year. It's by far the largest such loyalty plan anywhere in cannabis. As mentioned, last year, in November 2022, we launched ELITE, which is the paid tier. We actually started off with CAD 30 a year and raised it to CAD 35 a year. You get access to exclusive ELITE Flash Sales, where, for example, a CAD 300 vaporizer may be available for CAD 150 or CAD 160 in limited quantities. If you have to sort of rush out, if you're an ELITE member, you can get those products at those prices. There's other discounts such as half-price delivery, a goodie bag on your birthday, etc. One thing that we're particularly proud of and we will be featuring currently is our 4/20 cash giveaway.
For example, on April 20th, 4/20, if you go to our website, cannacabana.com, you can see we're going to be giving one lucky customer a CAD 100,000 cash prize. You can visit our store for a chance to win, or you can be ELITE, and you automatically maximize your chance to win at this prize. Especially if you're not ELITE, I'd encourage you to go to our stores, go to our website, where this could be the most profitable presentation you ever listened to. Going back to the slide deck, we actually raised the price a few months ago from CAD 30 a year to CAD 35 a year. You can see starting from zero in November 2022, where we had no ELITE members and no ELITE inventory, we've been able to get the word of mouth out, get the ELITE promotions and value proposition up.
We're now up to, as of, again, January 29th, 73,000 members, growing at a very impressive 161% year-over-year. These members are paying CAD 35 a year upfront to shop in our stores. It really cements the loyalty, similar to like a Costco. If I'm paying to shop at a store, I'm not shopping anywhere else. We see the ELITE members tend to spend more money in our stores than our base level members. This is actually my favorite slide, where we track the outperformance since we launched the discount club model again in October 2021. The red line here is our Canna Cabana same-store sales chained monthly. The monthly same-store sales change over the last three or so years has been a smashing success. We're up 130% from October 2021 to October 2024.
In contrast, the blue line represents total sales in the five provinces where we operate. During the same time, the total sales in the five provinces are up 31%. Now, the store count has increased by more than 31%. Unfortunately, we do not have same-store sales for operators, but the average operator is actually down 5% in terms of sales per store. At the same time, we are up 130%. Tremendous outperformance. There is no doubt our Cabana Club model has caught fire and is one of the main pillars for our outperformance. If you look at it on a per-store basis, in terms of per-store economics, looking at June, the average Canna Cabana is up CAD 2.6 million revenue run rate, whereas our peers are at 1.2 x.
In Alberta, our average store generates 1.8 x the revenue of our peers, whereas in Ontario, our average store does about CAD 3.5 million a year. Definitely our most lucrative province and the largest outperformance versus our peers, which are only at about CAD 1.2 million. 3.3 x our peers in Ontario. As mentioned, we have 71 more stores to put up in Ontario over the coming years. If we can maintain anything close to that CAD 3.5 million a year revenue run rate, that is an approximately quarter billion dollar opportunity ahead of us just in Ontario for revenue growth, roughly about 50% from where we are right now. Never mind all the obvious growth ahead in other markets, which will come, such as Germany and eventually the United States. Our market share, again, before we launched the discount club model, was about between 4% and 5%.
It's now up to 11%, steady increases throughout. The original goal was to get to 10%. We're now at 11%, and so the goal is to try to reach 15%. In other markets like Alberta, we're already at about 19%. Our leading sales per square foot, Canna Cabana is CAD 1,699 per square foot annualized based on the last quarter. If you look at, for example, Toronto Eaton Centre, a very prestigious shopping center, obviously Canada's number two mall by dollars per square foot. We're more than that. We're higher than Walmart, Target, Canadian Tire, Sport Check, Dollarama, Pet Value, etc. Some of our other retail metrics, our shrink rate is just 0.3%. We have an industry-leading G&A of just 4.2% of revenue. Our inventory management, with inventory turns over every approximately 18 days. Often, when we're looking at acquisitions, you can see there's 60 days, 90 days, 100 days.
We definitely run a tight ship. People always ask, well, how are you performing so well, especially in Ontario? The three main pillars are, one, the discount club model that has obviously caught fire, which I went over. The second element, the secret sauce, is the real estate strategy. Those of you who are in Toronto will know that, especially when cannabis opened up, everybody wanted to be downtown Toronto. They wanted that storefront, Queen Street, King Street, Yonge Street. We largely avoided those in the last couple of years. We went to the power centers where you have an anchor tenant like a Costco, Walmart, LCBO, a large grocery chain.
You're really bringing people in from 5 km, 10 km, and you're the only cannabis store in that area rather than fighting for one city block with three or four guys on the corner. Based on our size, based on the relationships we have with key landlords like RioCan, like SmartCentres, we typically get the first call when new opportunities open up. Consolidated revenue, and we're kind of running out of time, so try to hold it to it. Last quarter, revenue was CAD 138 million, so roughly CAD 550 million annual rate. EBITDA was CAD 8.2 million, and free cash flow was just shy of CAD 6 million for the quarter. On free cash flow, we're very proud of what we've done over the last couple of years. In 2023, we said the goal was no longer to keep growing.
As you can see, we typically grew 30-40 stores a year. The goal is now to be free cash flow positive. We've done that for six quarters in a row. Now we're ramped back up to growth mode. Last year, we opened 29 stores. We said the target was 28-30. We opened 29. We're at the high end. 28 were built, and they're ramping up towards maturity. One of them was bought. For this year, the target is again 20-30. We've already opened three. Just in terms of where we could be going, as mentioned, there's over 100 stores that we're going to be putting up, most of them in Ontario.
You're looking at just, without giving any particular guidance, if you look at the current state versus the future state, there's definitely the ability to increase our revenue and our EBITDA meaningfully from here, just from Canada alone. Never mind Germany, to which I'd like to get to just for one second. In Germany, we've been eyeing our German entry for some time. Unlike some of our other cannabis peers that spent tens, hundreds of millions in some cases in Europe waiting for Europe to become real, we sat back and said, when is the right time to enter? In April last year, they decriminalized cannabis. They actually legalized it for homegrown. Most importantly, they took it off the schedule of what is a narcotic.
You can see imports into Germany in Q3 last year were up 250% or 2.5x year-over-year. That was one of our clear signals that the German market is real. We have a unique ability to leverage all the relationships that we have with all the licensed producers in Canada and be a wholesaler to take their product into Germany and build out the largest network of strains, again, without growing any cannabis. If you look ahead, I think the future is very bright for High Tide . We are running out of time. Maybe we can sneak in one question. The next catalyst is reporting earnings Monday, St. Patrick's Day.
Thanks so much, Vahan, and well done on the presentation. I know we started a minute late, so perhaps we can go a minute past here.
Maybe just for starters, because it's so core to the company's success over the last few years, your retail and your discount club model have driven tremendous outperformance in what was or what is a very challenging cannabis retail industry for many other groups. We've seen a number of bankruptcies. We've seen industry consolidation. What do you think has been really the few really key pillars to High Tide's success in driving that retail store outperformance over the past few years? Do you think those same strategies will work in international markets as you look to international markets?
Yeah, to your point, it's a very difficult industry, right? Everyone is effectively selling the same products at stores more or less from the same price.
What we did was we had to figure out where is the market in terms of consumers and their preferences and what are our sources of differentiation and how can we leverage those into areas of strength. One area was accessories, where we're vertical in accessories. We have over 5,000 SKUs. It's about 4%-4.5% of our four-wall sales, where it's 1% for others. It's really not core, but the margins are much higher for us. We sort of lead with accessories. We lead with the discount club model, where we have obviously significantly lower prices, 10%-25% cheaper than our peers. That's really helped drive traffic and volumes. With volumes, you can start to do things like white label, which I didn't get a chance to touch on, but that adds 5% or 6% to our gross margins on white label sales.
You can get the benefits of scale. The second aspect, as mentioned, is the real estate strategy. The landlord relationships we have with the largest commercial landlords are very, very enviable. We get the first call. We have multiple leases with them. They know we're on the NASDAQ. We have 194 stores. We're more likely to drive traffic to the plaza rather than scare people away. The third is the operational know-how. Raj Grover, founder, CEO, and largest shareholder, he founded this company in 2009. Through when he was only selling smoke shops at the time, selling accessories, he's been at this for 15 years catering to the cannabis consumer. We know what they think.
We know what they like, and we're able to really have our T's crossed and our I's dotted and make sure we can use our areas of strength to succeed, where, as you mentioned, so many of our competitors have failed and gone under and sought bankruptcy for creditor protec tion.
Thank you so much, Vahan. Thank you as well for joining us today. This is Vahan Ajamian, Head of Capital Markets at High Tide. High Tide is HITI on the TSX V and the NASDAQ. Thank you again, Mohan. Appreciate your time.
Thanks for having me.
Our next presenter will be Decibel Cannabis. Decibel has been an innovator in the Canadian market, leading with premium quality products at affordable prices.
It was the first company to introduce infused pre-rolls in Canada, which took the country by storm and has since propelled the pre-roll category to nearly rival or overtake sales of dried flower products in Canada. The company retains a focus on innovation with new innovative brands such as Vox and Blinker, introduced to the market last year. Finally, Decibel is setting its sights on international expansion with the recent acquisition of AgMedica , positioning the company to accelerate international cannabis exports. I'm pleased to introduce Ben Sze, CEO of Decibel Cannabis, who has been instrumental to the company's growth, strategic direction, and achieving profitability. With that, Ben, over to you for your presentation. Ben, if you're there, I will note that you are muted. There you go.
Yes, I can't turn back my camera on. Someone turned it off. Are you able to do that?
We might be able to do that. Just give us a moment. Why don't you get started with your presentation?
Perfect. The screen is being shared. You guys can see it?
It is being shared. Thank you.
Awesome. Thank you, Peter, and thank you, Andrew, for setting this up for us. I do appreciate it. Stu, my CFO, was going to join us, but he apologized. He had a health issue this morning. Just me today. Thanks, everybody on the call for taking the time to hear about Decibel. I'm really excited to share with you guys just the company itself, but the growth trajectory that we're on with the acquisition of AgMedica late last year. We'll get started. In a snapshot, Decibel, we are very strong here in the domestic rec cannabis space here in Canada.
We are number one in pre-rolls and number three in vapes. Work very closely with High Tide amongst other retailers here in Canada. We determined last summer that the domestic market here is ultra-competitive. We have a strong position in it. I will highlight that our market share rank of number four, we do so without a value brand, without a discount brand. All our competitors ahead of us all carry a value brand to their portfolio. We wanted to continuously grow, and we saw that the international space afforded us that opportunity. Looking for the ability to participate through our acquisition of AgMedica, combining the Decibel production, we now have 12 tons of certified and qualified flower that we can export internationally. Across our portfolio, we have a manufacturing facility here in Calgary, where I'm based. I'm head offices as well.
We have a cultivation facility in Creston, B.C., a cultivation facility in Battleford, Saskatchewan, and now the recently acquired AgMedica cultivation and EUGMP processing facility in Chatham, Ontario. My screen's frozen now. Are you guys able to—there we go. Sorry about that. Jumping into the AgMedica acquisition, one of the key highlights is the EUGMP certification. Again, just a quick rundown on that. Products leaving Canada need to be upgraded to EUGMP certification or regulatory standards in order to access markets such as Australia, the U.K., Germany. Germany, the market has doubled last year, and we expect it to double, if not triple, this year. Similarly, patient count in the U.K. is forecasted to double in 2025.
In order to get product to those markets, which we're currently participating in, you need an EUGMP certified processor that then takes your GACP product and extends it to those markets. We were able to acquire AgMedica out of CCAA. I will note that AgMedica was part of a conglomerate of companies of which AgMedica, on a standalone basis, was already profitable. We thought that was a highly strategic and accretive acquisition for our portfolio that not only allowed us to—sorry—allow us to process our flower, our own internal flower, because we were previously customers of AgMedica's internally and therefore capture all that margin. With that acquisition, we gave guidance of net revenue of CAD 130 million. That's a 40% year-over-year growth from last year, adjusted EBITDA of CAD 25 million, free cash flow of CAD 20 million, which strengthens our balance sheet.
I think we'll trend toward a debt-to-EBITDA ratio of 1.4 x. Most importantly, though, this gives us access to six additional markets. As I had mentioned, we're seeing tremendous growth in Germany, tremendous growth in the U.K. We anticipate growth will follow in other markets. We're seeing that show up in Poland and Switzerland. Every day, a new market is popping up. We are very excited to leverage that and add that to Decibel's growth strategy. I think I covered over some of the markets. I think combining the two allows us that the strategic rationale was that Decibel previously was using Decibel as a toll or, sorry, AgMedica as a toll. Other notable countries that do this are Portugal, and there's a significant backlog, three to four months. Now, by bringing it all in-house, we're able to access these markets.
Total accessible market has increased for Decibel. We are not only doing this on a standalone basis, but we are extending other partner LPs, and we will be looking at American brands into these global markets. Covered the exponential growth in these international markets. I think that was the bet in terms of Decibel. One of the unique aspects is not only do we cultivate flower, we have got expertise in ready-to-consume and derivative markets. We have already established we are very strong in pre-rolls. We are also very strong in vapes. We are extending those vapes into the U.K., into Australia. We view that those medical markets, they all start with cultivation. They all start with flower. Eventually, over time, they shift into derivative products. We are exploring hash as a potential export as well as edibles.
We are already hearing edibles being highly receptive in markets like the U.K., and we suspect that it will be as well in Germany. I think this reinforces our bet, if you will. Again, not to give up on Canada. We view that as very key to our business and will continue to do so. A good component of our sales is domestic right now, and we want to shift that split, that revenue split. We expect that over time, the international component of our sales will start to shift to 50%-60% of our overall revenue. That is going to take some time, and that is going to come in the form of not only exporting our own product, leveraging different brand deals, but also tolling for our partners. Similarly, we have not done this without maintaining some sort of product release valve domestically.
Again, I think this is a problem that is not unique to Decibel, but there's a shortage of supply here for flower, high-quality flower. All of our cultivation is high-quality flower here in Canada. As a result, we do have existing demand that we can backfill such that when we ramp up all our grow facilities, our grow rooms, we're currently running at about 65%-70% capacity. We anticipate even if the international markets were to correct, we have added additional demand to backfill here domestically. Very strong, very proud of our company in terms of we've been consistently profitable. That's been a focus of ours. We've gone 16 straight quarters of EBITDA and free cash, EBITDA to free cash flow generation. We expect that trend to continue.
When we look at the space, I know some of our peers are on this call with us as well and look forward to hearing from them. There is a short list of those that are profitable and continue to return investors' capital. We are one of those guys where we feel that we stand out in that space. Now we have established a growth wedge in international. We suspect with our ability to continue to operate and execute, we are going to be able to leverage that into continued results. We are focused on de-leveraging, and I think that is a big focus this year on ensuring that we are generating sufficient free cash flow. Space is tough, and capital is tough to come by. As a result, we want to make sure we shore up our balance sheet.
I will highlight that our debt does come at a very good rate, and it is a fixed interest at 4.75%. I think that ends our deck. This deck is available on our website. We feel that we are undervalued in the space, specifically when compared to our peers, but also in terms of the opportunity that we have given. We are unique now. We are not just a domestic rec, Canadian cannabis company. We now have the ability to participate meaningfully internationally where all the growth is. I think with that, turn it over to Andrew for questions.
Great.
Hopefully get the camera working.
Great. Thank you so much, Ben. I do not think it is working right now.
There might be a prompt at the upper part of your screen to turn that on, or you can try the video button again, but if it still does not work, that's apologies for that.
There we go.
Oh, there we go.
Perfect.
Excellent. Nice to see you, Ben. You had a slide on the screen that showed the company's gross margin profile. As you pointed out, among the profitable peers in the space, it is on the upper end of that. I think historically, a big focus for Decibel has been finding efficiencies and driving efficiencies, and automation equipment has played a big role in that. What other opportunities does Decibel have for automation or efficiencies within its business today? Do you feel that the company today is running just about as lean as it can from that perspective?
I think that's a great question.
I think that's what gives me such great confidence in actioning and really driving value out of AgMedica. Prior to our acquisition, AgMedica was profitable on a standalone basis, exporting their flower to Germany, Australia, and a little bit to the U.K. They had a very small component of their business that was tolling. We know automation and production. In addition to extending Decibel's products, we are working with a bunch of partner suppliers, and we feel very confident we're going to be able to rip through their product on a timely basis. The caveat being international sales are very bureaucratic and administratively heavy. I think it takes time to set those contracts up.
In terms of efficiency of production and pass-through, we feel very confident that we're going to be able to do so, leveraging our existing strengths in manufacturing production.
Great. AgMedica and certainly international opportunities featured very heavily in your presentation. You put out some targets there for the business, international potentially representing up to 50% of sales over the long term. That would be quite a tectonic shift for how the business has operated historically. In your first few months after acquiring AgMedica, how has that acquisition gone? How's the integration going? Is what you're seeing from that business giving you confidence that there continues to be a large international opportunity and AgMedica is the right asset to be able to capitalize on that?
Yeah, great question. Wish we had the opportunity to acquire them sooner.
I mean, I think it's been a crash course in learning about the international markets for myself personally. I wanted to take it upon myself to understand how things worked and the nuances around different various countries. I can tell you they don't make it easy for you. Having said that, this is a very sticky business. Once you get into the market, once you find your supplier, your sales stream, because these are medical patients that we're dealing with, this is prescribed. As long as you deliver consistent quality, you own that channel. To wrap back to it, the acquisition was absolutely the right move for us. We are excited every day coming to work, looking at what growth opportunities we have, and there's a new one. It's up to us to execute. We're on that path.
I would say that perhaps slightly slower than I'd like, but our pipeline has never been fuller, and it continues to grow every day. Yeah, I think the international aspect of it, the integration, not without its challenges, but everything's been manageable. I feel very, very optimistic and confident that it was the right choice and can't wait until we start really pumping the sales through.
Great. Great to hear. Maybe a last one, if I may. Product innovation has been so important to Decibel in its past and continues to be important. Do you have any plans to launch new innovative products or brands in the Canadian market this year? Would you have any sort of thoughts on what those products or brands, what those might be that you'd be willing to share here today?
Yeah, continuous innovation.
I think that's what this industry has done really well. We forget sometimes that it's only seven years old, but the vast diversity that we have available to us, especially in such a highly regulated market, is a testament to everybody in Canadian cannabis. To answer your question, we do have innovation constantly. We just launched several new SKUs that have been very well received here in Alberta, and we expect that to make its way to the different provinces very quickly here. Ultra-high potency, liquid diamond vapes, and we've got an infused milled product that just hit the market here in Alberta. Constant innovation and constant assessment of neighboring provinces, neighboring countries, really, a lot of innovation comes out of the states to identify those trends to ensure that we're giving our consumers what they want.
I think fundamentally, as much as we want to make sure we are on trend, if you will, with the product offerings, we have got to continue to deliver high quality. That has been a commitment of ours from day one. That quality needs to not just sit with our flower, but extends to all of our product portfolio and subsequently to our new customers internationally.
That is great. Ben, thank you very much for joining us today. Really appreciate it. It was great to catch up. For all the audience here, again, this is Decibel Cannabis, ticker DB on the TSX Venture Exchange. Ben, thank you very much for your time.
Thank you.
Great. Our next presenter today is Cannara Biotech, a Quebec-based cultivator of premium cannabis products.
The company's brands, such as Tribal, Nugz, and Orchid, are well-known and highly regarded by consumers all over the country as Cannara has consistently delivered a high-quality product while continuing to scale. The company's growth has been propelled by the acquisition of a massive purpose-built state-of-the-art cultivation facility it acquired at a fraction of its build cost. Cannara continues to have room to scale within this facility, providing it with cannabis supply needed to fuel its growth and expand distribution across the country as it focuses on winning in the Canadian market. With that, I'd like to welcome Zohar, CEO, and Nic, CFO, for their presentation today. I believe I am turning it over to Nic. Over to you.
Thank you, Andrew.
Good afternoon, everyone. Thank you for having us today. I'm Zohar Krivorot, founder and CEO at Cannara Biotech.
And I'm Nicholas Soziak, CFO of Cannara Biotech.
We've been deeply involved in every aspect of this company since 2019, from cultivation to processing, finance, strategy, sales, marketing, and product development, working alongside our team to drive Cannara's success. Cannara's is emerging as one of Canada's largest vertically integrated cannabis producers, driven by strong financials, innovation, and a consumer-first approach. At the core of our success is the vision and leadership of our CEO, Zohar Krivorot , who is deeply involved in our core activities on a day-to-day basis. That hands-on approach from Zohar, myself, and our 400-plus employees has been the key to our success. What truly gives Rubicon Organics its competitive edge is our control and execution. We've built one of the most cost-efficient operations in the industry while maintaining market-leading quality. Our disciplined financial strategy allows us to scale sustainably, a challenge many others in this space have struggled with.
That is exactly what we will cover today: how Cannara has positioned itself as a leader in this evolving industry. Just a reminder before we continue that all information presented today is subject to our general disclaimers on financial measures and forward-looking statements, which are available to be read in detail at sedarplus.ca. Cannara Biotech stands out as one of Canada's fastest-growing and most profitable cannabis producers. We have consistently delivered market share growth, strong revenue performance, industry-leading margins, and positive cash flow across the board. Our market share expansion has outpaced our peers, driven by best-in-class facilities, superior operational execution, and strong consumer demand for our product portfolio that focuses on consistency, premium, and quality offerings at an affordable price. Our home province of Quebec is a key part of our success.
As Canada's second-largest province with over 9 million people, it provides us with a home field advantage and access to some of the lowest utility and labor costs in Canada. Since these costs account for 75% of our indoor cultivation expenses, this gives us a significant margin and cash flow advantage while delivering exceptional value to our consumers. Let me give you a few key stats. We are the seventh-largest licensed producer in Canada by sales, and climbing fast as we scale. We are the fourth-largest producer by facility size, with 1.6 million sq ft of built-out space and a potential annual capacity of 100,000 kg. As of November 2024, we hold third market position in Quebec with 12.9% market share and seventh nationally with a 4.1% market share, both rising steadily every quarter. It really comes down to two things.
Every decision we make, from pricing to facility expansion, is designed to ensure sustained and profitable growth. We do not just scale. We scale smartly, making sure our quality, efficiency, and execution are second to none. Cannara's financial performance speaks for itself. In an industry where profitability remains elusive, we continue to deliver strong and consistent results. For Q1 2025, we posted CAD 25.1 million in net revenue, marking a 29% year-over-year increase. Our gross profit before fair value adjustments was CAD 9.8 million, maintaining an industry-leading margin of 41%. This quarter also marked our 15th consecutive quarter of positive adjusted EBITDA, coming in at CAD 6 million. We generated CAD 2.3 million in net income, but more importantly, we delivered CAD 5.8 million in operating cash flow and CAD 4.6 million in free cash flow for Q1 2025, representing a 23% and 18% margin, respectively.
As proud as we are of our brand success, we believe that top-line revenue means nothing if it doesn't translate to the bottom line. That is why we're especially proud of our industry-leading cash flow generation and cash flow margin. This consistent profitability has resulted in a robust balance sheet with over CAD 10 million of cash on hand and over CAD 36 million in working capital. Our 100% owned facilities are Cannara's competitive advantage: scale, efficiency, and cost leadership. A perfect example is our Valleyfield facility, a CAD 250 million state-of-the-art cannabis facility we acquired for just CAD 27.9 million in 2021 from the Green Organic Dutchman. This gives us one of Canada's largest and most advanced indoor cannabis operations at a fraction of the cost. With Valleyfield, we can triple our current cultivation capacity. Zohar, can you give our viewers some insight into what Farnham and Valleyfield looks like?
Yeah, our Valleyfield facility, which we acquired in 2021, is 1.1 million sq ft purpose-built for cannabis cultivation. There are 24 growing rooms. Each room is 25,000 sq ft and holds 10,000 plants. Today, we're growing 10 rooms, and we are on target to activate two more rooms in the next four months for a total of 12 rooms. The balance of the 12 rooms will be turned on in the next 36 months, bringing our total cultivation capacity from 40 tons to 100 tons per year. Our Farnham facility, which is located an hour away, it's 625,000 sq ft, which we occupy 200,000 sq ft today.
The Farnham facility is dedicated to the operation of our nursery, our phenohunt process, post-harvest, and packaging. The balance of the building's 425,000 sq ft is currently leased out to two tenants, which generates us over CAD 4 million a year in rental income.
Together, both of these facilities give Cannara the foundation it needs to execute on our growth. Cannara's growth strategy is simple. The foundation is in place, and all that's left is execution to grow our current capacity two and a half times and, in turn, our revenue. With massive uncaptured market share still on the table, we are expanding strategically and profitably. We have taken a slow and steady approach, and over the next three years, we will be fully built out and achieve our phase one goal of being Canada's top producer. Cannara's success comes down to three key advantages: premium quality, scalability, and cost leadership, all traits built into our three flagship brands: Tribal, Nugz, and Orchid CBD. We produce top-tier cannabis at scale. We hang dry, hand-trim, slow-cure our cannabis to ensure consistency and without irradiation, fueling high demand for our brands.
Our 1.6 million sq ft of production across two mega facilities gives us massive expansion potential. With only 40% of our capacity activated, we can scale profitably with minimal investment. Quebec's electricity rates are 50% lower than Ontario, three times lower than Alberta, keeping our margins high while maintaining industry-leading pricing. While many Canadian LPs are expanding overseas out of necessity, we are thriving in Canada by choice. The reality is that most can't compete profitably here. They're losing market share, struggling to build brands, and failing to operate efficiently. This industry isn't just about capital. It's about experience, knowledge, and most importantly, execution. Cannara has built this from the ground up. Every process we've developed is designed for long-term success, not short-term survival.
Our Canada-first strategy has driven national market share from 3.2% to 4.1% in just one year, marking us as one of the fastest-growing LPs in Canada. We now hold number one position in key premium categories such as live resin, vape parts, CBD flower, infused pre-rolls in Quebec, and hash rosin in Ontario. What sets us apart is not just our pricing. It is our quality and consistency. When consumers choose Cannara brands, they know exactly what they are getting: top-tier cannabis at the best value. Cannara Biotech is not just another cannabis company. We are market leaders, a disruptor, and a company built for sustainable, profitable growth. Our financial performance speaks for itself. Again, 15 consecutive quarters of positive EBITDA, industry-leading margins, operating and free cash flow, and our market share is up over 20% in one year.
We dominate in key categories with constrained demand for our leading brands and no clear demand ceiling, yet we still have the ability to triple our production capacity organically. Most importantly, our foundation is built for long-term success. With world-class operations, financial strength, and relentless execution, we believe we are positioned to shape the future of Canadian cannabis. All of this cannot happen without a dedicated team. I firmly believe that we have one of the strongest teams in cannabis that is 100% dedicated to Cannara's success, all guided by an executive team that leads by example. Thank you for taking the time to learn more about Cannara. Andrew would be more than happy to open the floor and take your ques tions.
Great. Thank you so much, Zohar, Nic.
Are we able to turn on the camera?
We cannot see the camera, Andrew.
Okay.
We will see if we can get that camera on for you. Again, there might be a prompt at the top of your screen to turn on the camera, or you can turn it on using the button at the bottom of the Zoom webinar. Hopefully, we can get that working.
I'll go ahead and ask the first question here. It feels as if Cannara has somewhat of a fortress position in Quebec. You've built such a strong market share and customer following within that market. Yet, it still seems as if it's early days for the company across most of the rest of Canada. Oh, there you go. Nice to see your faces. Welcome. It still feels as if it's early days for Cannara across much of the rest of the country.
What is your strategy to maintain the strong market share you have seen in Quebec while continuing to expand market share in other provinces as you expand your distribution and your products across the country?
We have a very close relationship with the Quebec SQDC, which is the dispensaries that are run by the government. We are made in Quebec, for Quebec. That has been from day one. We pay close attention to feedback that we get from the Quebec market. I think there are not many other Quebec players that can participate in this. This is why, as long as we keep the phenohunting process, the quality, the consistency, and the price by being in Quebec, that gives us a huge advantage over the others.
As Zohar said, it all comes down to our value proposition. The product speaks for itself.
In Quebec, what's important to know is that there's no marketing. Really, it's the product quality, the price, the consistency that really pushes the product, pushes your market share. If our quality was not good, we would not be a 12.9% third position in Quebec. It's hands down, it's clear. We spent CAD 0 in marketing in Quebec to gain that position. That's just organic growth from consumers enjoying our product. We've been focused in Quebec, built in Quebec for the past four years, little investment in marketing and sales across Canada at all. Now, since Q1 2025, we've really started investing in a sales team. We had two salespeople across Canada for our whole revenue generation. Now we've upgraded that to six, going on to seven, doing it. We had no trade display programs in stores.
If you walked into most cannabis stores across Canada, you would not see any Tribal, Nugz, Orchid banners or discounts or anything like that. With that ability, that strategy, the sales and marketing strategy, coupled with product quality, we believe that we can replicate the percentage, the market share that we have in Quebec, which is a 12.9%, 13%, climbing up to 14% soon across Canada.
That's great. In your presentation, you clearly demonstrated the spare latent capacity you have and the opportunity to build into that over time within Cannara, that's within your existing facilities today. What needs to happen to ensure that as you grow, as you build that capacity, that you're also building demand over time? I think you were alluding to maybe pushing on sales and marketing efforts a bit more.
Sales and marketing, but that's one avenue to get sales and marketing will never get you distribution, but it will never fuel the business, the consumer needs in cannabis. There has to be an innate innovation, quality, consistency in the product. You have sales and marketing pushing, but then at the forefront, we have innovation. We spend, I don't know how much we spend. I know how much we spend, actually, but we spend a lot of time and a lot of resources on the phenohunt process. That's finding cannabis genetics. We truly believe to build a sustainable cannabis company, you need those cannabis genetics. We're the only agricultural industry where we find a genetic and three months later, six months later, and we have to find a new genetic to cater to the consumer needs.
We've proven that if you do the work, you can have long-lasting genetics. Our Gelato Mint, our Cuban Linx we launched in 2019 are still one of the best sellers that we have today. We are in the process of finding all these genetics, all these what we call unicorns that have high yields, that have high terpene profiles, high THC profiles, and then releasing them under the brands. That is just going to fuel demand, accelerated by our sales and marketing strategy to get to our goal.
Great. In your presentation, I think you made it clear that you're focused on the Canadian market. You see a big opportunity to grow here in Canada. What would it take for the team to look at international growth opportunities?
Do you think that there's still so much opportunity just here domestically that it's not worth it in the immediate term?
I think that's a great question, Andrew. I think the opportunity in Canada is huge. There's really no point for us, at least, to look at international if we just want to focus and really go after the low-hanging fruits, which is right here in our backyard. It's easy with brand loyalty. It's the only way to build that with consumers here in Canada. The market is there. I think we just got to stay focused, keep doing what we're doing, consistency, price, quality, get consumers to really believe in our brands, and like I said earlier, build that brand loyalty.
If we ever do have any excess inventory in the future, once we achieve our 100 tons or 100,000 grams, 100,000 kilos, then we may consider looking at international. Right now, I told all my sales and marketing and finance teams to just keep focusing in Canada. That is really where the opportunity is. As more and more of my competitors start switching and looking at international, that is where we come in even stronger and say, "Listen, let's just focus and do what we do, but do it here in Canada."
Great. Thank you so much, Zohar and Nic, for joining us today. Again, to our listeners, this was Cannara Biotech, ticker symbol LOVE, L-O-V-E, on the TSX Venture Exchange. I want to thank Zohar and Nick again for presenting to us today, and congrats on the momentum in your business.
Thank you, Andrew.
Did you see him?
Our next presenter is MTL Cannabis. MTL Cannabis is a flower-first Canadian cultivator and processor that aims to bring craft-quality cannabis at scale to the Canadian market. From its facilities in Ontario and Quebec, the company has more than 18,000 kg of annual cannabis production capacity, from which it serves recreational, medical, and international markets. After the acquisition of Canada House Wellness in 2021, and following a period of integration and turnaround, MTL Cannabis has emerged as a profitable, fast-growing enterprise that is ready to capitalize on growth opportunities across its multiple sales channels. I'm very pleased to welcome Mike Perron, CEO of MTL Cannabis. Mike, please go ahead with your presentation.
Thank you very much. Is everything all good for the presentation viewing?
Everything's looking fantastic.
Awesome. First off, I want to say, thank you, Andrew. Thank you, Peter, for hosting us.
To the other over 100 viewers, thank you very much for giving us the time today to learn a little bit about MTL Cannabis. I'll start off, obviously, with the standard disclaimer for all information inside the deck. Really, who is MTL Cannabis? We are a licensed processor and cultivator located within Canada and listed on the CSE under the ticker MTLC. We participate in all the major revenue channels that Canadian cannabis producers can participate in vis-à-vis the Canadian recreational, the Canadian medical, and the international markets. All three of our revenue channels are growing faster than the Canadian market. We generate profitable revenue from all three sources. The strength of our business really is on our team. I'll speak to our team and our experience and how it translates into our results as we go through the presentation.
I'm sure the audience is going to be seeing about 15 different cuts of Canadian market data, so I won't spend too much time on that today. Really, what we've seen in the Canadian market is it still continues to grow. It's well over CAD 5 billion in sales right now. It continues to trend upward as brick-and-mortar stores start to roll out and more conversion comes from the illicit market in Canada. Really, when you look at the size of that pie that's getting bigger, what does that pie look like? At the end of the day, even after six years of legalization, flower products still predominantly own the market. Roughly, give or take, CAD 0.70 of every dollar spent is on a flower or a pre-roll product in Canada. Those are the markets that we focus on.
I am going to speak on focus and discipline with our strategy as we go through the presentation. Primary products for us are flower and pre-rolls. We also do hash with our derivative products. We have access to roughly CAD 0.75 of every dollar spent in Canada in the retail market. When you look at the international side of the business, this is an area that is incredibly exciting to us, and I know a lot of the other presenters here today. What we have seen in the first six months of track data in fiscal year 2024 for Canada, it was almost 70 tons of product has been exported, which is almost a 100% year-over-year increase from the previous year period.
When you look at two of the larger countries in the world that are importing, you have Germany with over 70 tons in fiscal year 2024 and Australia with over 42 tons in fiscal year 2024. Both of those primarily serviced by the Canadian exports. Not unlike anything from our natural resources here in Canada or auto parts. We are a trusted partner for the global markets, and cannabis is no different. This is an area where, in addition to the domestic market, we see a lot of tailwinds for our industry. When I look at the catalysts, as I said, the Canadian market continues to grow. The pie is getting bigger, and we're starting to see what consumers are purchasing. Like I said, it's still roughly 70% of every dollar is in flower products.
The international markets are exploding, and competitors are leaving the industry, which is a benefit to not only ourselves, but all the other presenters that you're going to be seeing today. Those competitors are leaving either voluntarily or involuntarily. When you think about involuntarily, if you look at the CCAA listings in Canada over the last couple of years, the largest segment has been cannabis companies. At the end of the day, that just creates more shelf space for a lot of participants you're going to be seeing here today. Also voluntarily, you're seeing companies divert to become craft beer roll-up companies in the U.S. or simply leaving the Canadian market due to the fact that it's highly competitive and only focusing on exports.
That is something where you're starting to see the shelf space open up a little bit for a lot of the participants you're seeing here today. On top of that, the legacy market continues to erode. Really, how does MTL Cannabis participate, and how do we benefit from this? I'm going to speak to this as we go through the presentation, but it really comes down to our team, our operations, our focus, and our leadership in the industry and how we approach the industry, which is a little bit more unique for this space. It would be helpful to go back a little bit into the history of MTL Cannabis to really understand our story and where we are. Founded in 2018, it originally was a founder-led business operating out of Pointe Claire, Quebec.
Always profitable, flower-focused, positive cash flow business that really ran into a problem of production capacity to meet the demand. Demand has always exceeded our ability or supplies. Demand has always exceeded our ability to supply the market, which caused the original founders to really look at what was out there to expand the business from a corporate development perspective. That included everything from M&A, looking at distressed assets, brownfield opportunities. At the end of the day, it led us to the Canada House Wellness opportunity, which was, to be honest, a distressed public company.
Once we were able to really sink our teeth into the acquisition and get our hands on the company, just to give you an understanding of what we started with Canada House, when we got our hands on the business, it was operating with a CAD 7 million operating loss in their last full year of financials and CAD 11 million net loss. Within one quarter, we were able to bootstrap the turnaround to get positive operating income. After two quarters, we were able to get positive net profit and positive cash flow with the operation. Since closing the transaction, what we have done is fully integrate all of our assets, our supply chains, our operations, and really maximize the efficiency of our business.
This is really done with no capital injection, which is very unique in our industry where we never had an opportunity to participate in the euphoric markets that were 2017, 2018, where you can snap your fingers and raise CAD 30 million in an oversubscribed deal overnight. We did not have those advantages, but we were able to make the most of what we had and turn it into a profitable company. Since then, what we have done is continue to expand our business both from a channel and production capacity standpoint. We have expanded all of our operations and all of our assets to continue to try and meet that demand in the market. We continue to improve our efficiencies while doing so. A little snapshot of how we operate and where we operate. We have two assets in Quebec, one in Ontario.
Our primary asset is our MTL Cannabis facility in Pointe Claire. It produces around 9 tons of capacity. We have retrofitted and expanded that over the last two years. That is our primary production and distribution hub for the recreational and the international markets. During the transaction, we also took on the IsoCanMed facility up in Louiseville, about an hour outside of Montreal. The Louiseville facility was an amazing facility that needed some work on the operation side, but had a really, really strong team operating within it. Since taking over the Canada House business, we have retrofitted their facility to realign their operations, as well as double the capacity in the last year. Now what was a facility that did not have the most efficient operations is now our lowest cost per gram producer at scale in our business.
In addition, we have our Abba Medix facility in Pickering, Ontario, which we've also retrofitted to generate around 2.5 tons of capacity per annum. It also serves as our medical fulfillment and distribution hub for the business. When it comes to our channels and how we operate in the Canadian recreational market, we have three brands: our MTL Cannabis brand, our Low Key by MTL Cannabis brand, and our Rebel brand for the Quebec market. In the Canadian medical market, we have our Abba Medix platform, plus our Canada House clinics, which I'll speak on in the upcoming slides. In addition, we have our global export market where MTL product is being pushed around the world. When it comes to the recreational market, as a lot of you know, the Canadian market is the most competitive market in the world when it comes to regulated cannabis.
We've been very fortunate to be a strong performer in this market, and it really is driven by quality and consistency. Just to speak to the brand impact that we have had, there was a Brightfield study done last year that covered over 500 dispensaries across the country. We came out as one of the number one recommended brands by budtenders. That really is driven by the fact that budtenders and the dispensaries in Canada can really rely on MTL Cannabis . It's not only to generate margin, but also velocity for them. We have become a trusted partner to the retail sector in Canada. We are a very competitive culture, and we still participate in things like the Karma Cup, which is usually reserved for small craft producers, but we enjoy competition, and we won it in 2023, and we're a finalist again in 2024.
We also won the Brand of the Year at the Grow Up Conference last year as well, just to speak to the brand equity that we are building in the Canadian market and continue to invest into today. Speaking on the medical side of our business, this is an area where I'm very much enjoying building out, and this is something that came with the Canada House transaction, both with Abba Medix and the Canada House clinics operation. What our medical business really is, it is focused exclusively for the Canadian veteran. For those who are not aware of the Canadian veteran market, it is the only group in Canada that actually has 100% insurance coverage. Most insurance coverage is maybe 20% at best. We're not chasing down medical patients for collections. We work with Blue Cross. We have one vendor.
That market is 27,000 active veterans right now, and it has been growing at mid-teens, 13%, 14%, 15% each of the last three years, respectively. We currently serve over 3,400 veterans, and we're looking to continue to grow our market share within that segment. We think there's a lot of tailwinds both from the actual expansion of that market and our ability to go and expand our market share of that market. We also have our Canada House clinics, which was originally what Canada House Wellness was founded on. We operate 12 clinics across the country, all of them located next to military bases. You are able to work with the active military and new veterans as they come off base, and you are able to help aggregate them into our clinics and all of our partners.
The nice thing with our Abba Medix facility is not only does it feature the MTL Cannabis brand and products, but we're also able to feature the best and the best in Canada with a lot of our partners who you're actually seeing here present today, who are suppliers to our Abba Medix platform and have become great partners over the last few years. On the international side, this is an area that we've really expanded to over the last few years. Just with my background working in international cannabis and our team, we've been able to open up channels in Germany, Australia, Poland, and the United Kingdom. As our capacity continues to increase and as we continue to increase our cultivation footprint within our operating assets, we're going to continue to fulfill these markets, obviously defending home field first and prioritizing Canada.
As our capacity grows and we're able to satisfy the domestic demand, we can start to look at servicing the international demand as well. We've been in Germany for well over a year now and some of our strains are some of the top performers in that country. We're just starting to launch into the Australian market and soon Poland and the United Kingdom. Really, what this all comes down to is the financial results. What I've highlighted here is where we are year to date, sort of our first nine months, starting with CAD 77.9 million of revenue. We're continuing a growth trajectory for the business, up 20% year-over-year. When I speak about our team and our operational focus of efficiencies, it really is shown in our margins.
At this point last year, we had a 43% gross margin before fair value adjustments, which would put us in the top 10 percentile of all producers in Canada. Since then, we've further enhanced those margins to over 50% now, which has led to, obviously, an increase in operating income to the tune of 124% year-over-year growth. Really, what we've had to rely on as a business is our cash flow from operations. Cash flow from operations is a lifeblood of our organization. As I'm sure you're well aware, the capital markets and the debt markets are pretty much nonexistent to our industry at the time being and definitely not what they were five years ago. For us, we've had to self-finance everything.
When you look at the history of our business going back to the timeline, we've been able to not only fund our growth and organic growth capital, but also expand all three facilities in addition to paying back legacy creditors we inherited from the Canada House transaction to the tune of CAD 8.5 million while continually increasing our cash balance. For us, it always comes down to generating cash flow from running a business the right way. It has led to an adjusted EBITDA of CAD 14.2 million, which is a 100% increase year-over-year, in addition to CAD 14.4 million of just general regular EBITDA. As I said, our revenue continues to trend upwards. Through three quarters, we're almost surpassing our revenue total of CAD 83 million from last year.
We are looking to continue to increase that revenue curve as our cultivation capacity continues to increase and our focus strategy in each of our three markets continues to grow and develop over the next few years. A little bit about our team. Like I said, I really lean on our team for our performance. We have a very unique team with a very unique background, whether it is on the corporate side or the operational side. Really starting with myself and our CFO, who have over 10 years of corporate experience in the cannabis industry, in addition to having a track record in a non-cannabis industry or external to the cannabis industry, working in both the U.S. and Canada in blue-chip global organizations and really bringing that expertise into this industry.
We both started, we're early employees at MediPharm Labs, where we were able to demonstrate, starting with a pre-public, pre-revenue company and helping drive over CAD 129 million of sales in its first year and CAD 29 million of EBITDA while taking the company public and uplisting from the TSX Venture to the TSX in six months. On the other side of the coin, we have our founders and directors who started the company and really are the core for our operations on the cultivation and the post-processing side of things, and really leaning on their experience of a combined over 40 years working in regulated cannabis, starting on the MMAR side of things and making the journey all the way through MMPR, ACMPR, and the Cannabis Act.
Really leaning on this team and our teams working with us to focus on developing a strong set of operations that leads to the financials that we've walked through. A little bit of a snapshot in our capital structure to show where we're sitting at CAD 42.1 million market cap right now or as of Friday. Really, when I look at the future of our business and where we go, we will continue to stay focused on our strategy, focused on the fundamentals, and focused on generating meaningful cash flow by delivering consistent, high-quality product and services to our market. That is MTL Cannabis .
That's great. Thank you so much, Margaret, for your presentation. I'll start off here by commending you on the business and the full MTLC , I should say, on the success that the organization has seen over the past few years.
It's obviously been an exceptional acceleration in revenue and earnings momentum led by the company's investments in its facilities and operational efficiencies. What are the next steps for the organization to ensure that it maintains momentum in the years ahead? Where does MTL Cannabis go from here?
For sure. That is really two-pronged, obviously, starting with our focus on operations, as you noted. Always continuously bringing in new genetics, bringing in new products, ensuring that consistent, high-quality product is going to the hands of the consumers and continuing to support that demand. In the back end, continuing to expand our operations. For us, like I said, the history of MTL Cannabis could really be described as supply trying to chase the demand curve. We are continuing to chase that curve by continuing to do things, focus on that quality.
On the other end, on the corporate side, is continuing to be fiduciaries to the company. Like I said, we really have to rely on ourselves for cash flow generation. I commend our CFO and our entire finance department for elite-level, what I would call elite-level treasury management to manage both expansion, organic growth, as well as taking care of our creditors and doing that without diluting our shareholders.
Great. Maybe just one more in the interest of time. How much additional room for growth do you think that your current cultivation facilities can support? How will MTL Cannabis continue to drive further growth once those are fully utilized?
Absolutely. I do think we have a decent amount of footprint left to grow into. As always, it comes down to how much capital you have available to accelerate that growth.
I do think we do have both from actual floor space to move into and also investments into our current grow rooms to enhance those yields and enhance those production numbers for us. I think there's a significant amount both internally, but also there's opportunities as well with the changing dynamics in the market to look at additional space in the future.
Great. Mike, I want to thank you so much for your presentation and your time joining chatting today. Again, to our audience, this is MTL Cannabis, ticker symbol MTLC, listed on the Canadian Securities Exchange. I want to thank Mike again for his presentation.
Thank you again, Andrew.
Up next, we have Auxly Cannabis Group. Auxly is among the leading suppliers in the Canadian cannabis market and an early mover in the industry.
The company took a unique approach of prioritizing cannabis 2.0 products in the early days of the Canadian cannabis market. Its early product innovations helped it to take sizable market share in the emerging categories such as vapes, concentrates, and edibles at that time. Auxly has never lost its focus on innovation. Today, it operates a 1.1 million sq ft purpose-built, highly automated cultivation facility that is the engine for the company's growth. With an expanding assortment of products, a renewed focus on flower excellence, and leading brands, Auxly remains well-positioned to capture growth in the Canadian cannabis market. I'd like to welcome from Auxly, Hugo Alves, CEO, Travis Wong, CFO, and Mike Lichver, President, and thank them for joining us today. Hugo, Travis, and Mike, please go ahead.
Great. Can you hear me, Andrew?
I can hear you loud and clear.
Excellent. Excellent.
Julie, please get the presentation on the screen. Thank you, Andrew, and thank you, Ventum, for inviting us to participate and, of course, to the audience for tuning in. As Andrew mentioned, Auxly is a vertically integrated Canadian cannabis producer. We specialize in the cultivation, manufacturing, and sales of branded cannabis products and focus on dried flower, pre-rolls, and vapes. We are publicly listed on the TSX and OTC exchanges. We are delighted to be with you here today. My name is Hugo Alves. I'm the co-founder and CEO of Auxly. With me today are Auxly co-founder and President Mike Lickver and our CFO, Travis Wong. I really appreciate the opportunity to give you an update on Auxly and why we're really excited about the company and its future. Next slide, please. Just some compulsory disclaimers.
While I have you here, I just did want to mention, as we announced this morning, we'll be releasing our Q4 and full year 2024 earnings in just over a week on Thursday, March 20th, before markets open. We're very excited to share those results with investors. Next slide, please. While we're currently very focused on winning at home, our long-term vision is to be a global leader in cannabis products to see our products and brands all over the world. What drives us every day is our belief in the power of the cannabis plant, its power to help people live happier lives. That is the mission that fuels our dedication every day to making high-quality branded products that consumers can trust and love. Next slide, please.
Despite all of the challenges and headwinds that the industry has had to navigate, our passion and belief in the opportunity in front of us has never wavered. We remain very excited by the great cannabis opportunity and Auxly's ability to capture it. Next slide, please. You have already heard a lot today about the continued growth of the global cannabis market. More and more governments are giving their citizens access to the incredible power of cannabis. Cannabis continues to be a once-in-a-lifetime growth opportunity. Canadian companies, including Auxly , are very well-positioned to participate and thrive on the global stage. That is not our focus today because we have always said, in order to truly believe that you can be a global leader, you have to win at home first. Slide please. Thankfully, we have got a great market in Canada. It continues to grow.
Cannabis was a CAD 5.8 billion market in 2024 and contributed over CAD 8.3 billion to Canada's GDP. More and more Canadians find cannabis to be socially acceptable. More and more Canadians are choosing cannabis as their preferred recreational substance. More and more of those consumers are choosing to purchase their cannabis from safe legal sources. We have a growing market in Canada, and it is also a fiercely competitive market and the most highly regulated in the world. If you can profitably win here, there is a reason to believe you can win anywhere. Slide please. It is also a great time to be a large-scale Canadian cultivator of high-quality cannabis because for the first time in a long time, flower prices are increasing in Canada.
As companies have exited the industry or converted to asset-light models and sold facilities, as international demand has continued to increase, it has created greater scarcity for high-quality product, driving prices up. We believe those dynamics will continue given the high capital cost and time necessary to bring quality cultivation capacity online. The Canadian market continues to grow, with better pricing dynamics driving greater stability and growth. That really brings us to why we're so excited about the future of Auxly and why we believe it is a great time to consider investing in Auxly . Slide please. As Mike will outline, Auxly has proven that it can create quality products that win with consumers. Back Forty exited 2024 as the number one brand in Canada overall and has remained there ever since.
We are leaders in the largest, fastest-growing product categories, and we have invested in the right assets and capabilities so that Auxly can continue to grow and thrive and take advantage of the great cannabis opportunity. As Travis will explain, we are delivering strong, profitable results that will allow us to continue improving our balance sheet to give us a strong foundation from which to advance on our vision with confidence. We are still in a very young industry, still very early days, and Auxly is just getting started. We are executing against our strategy. We are winning at home, and we are excited about our future. If you are considering investing in cannabis, we invite you to take a close look at Auxly . I thank you for your time today, and it is my pleasure to turn the microphone over to our Co-founder and President, Mike Lickver . Mike.
Thanks, Hugo. I can get the next slide. Thank you. And one more. Thanks, Hugo, for the overview. I'm going to dive a little bit into more of a granular look at the company and our current performance and our asset base. At a glance, founded back in 2017, we're headquartered in Toronto. We are on the exchange under the ticker XLY. First and foremost, our major strength has and is and will continue to be our people. We have 380 employees across Canada, and we genuinely believe it is our largest strength. We dedicate a lot of time and resources year-over-year to investing in our most important asset, which is our people. We've developed a culture that is bar none, in our opinion, the best in the industry, certainly world-class, best in class.
We have a culture of innovation and a culture of continually being the underdog regardless of our performance and our results. We take that very seriously and continue to invest in that. Moving over to the right, we are nationwide. As of late 2024, we were able to successfully enter Quebec for the first time in our company's history. That brought us to being a national LP, truly. Our distribution is deep across Canada. We are in 97% of all stores. We currently have five brands with a mixture of everything from slight premium to core down to more medically focused. As Travis will get into in a bit more depth, we have been growing and are continuing to grow at a healthy pace and specifically out-indexing the industry growth last year by double digits. Moving on, hopefully my dramatic pause will indicate a slide change.
As Hugo mentioned, our strategy has been and continues to be winning at home, first and foremost. Our results to date speak to the execution of that strategy. As we sit here today, Back Forty is the number one brand in Canada across all categories. We are really, really excited to see that and to know that is a reflection of consumers voting with their wallets. We are the number fourth LP in Canada. Right now, we have the number one best-selling all-in-one vape brand, which is a category that we are proud to say we believe we had a strong hand in creating and driving change in the vape category to lead the growth of that category, which is the fastest-growing category in Canada. We have the number one best-selling flower brand, which is also Back Forty.
We have the number one best-selling non-infused pre-roll brand, which is also Back Forty. We have two state-of-the-art facilities that I'll cover in a moment. We have had six consecutive quarters of positive adjusted EBITDA. Importantly, we also have one very large, valuable strategic partnership in Imperial Brands, who is also our largest shareholder. Jumping into our facilities, one of two is Auxly Charlottetown. This facility we acquired back in 2018. At the time, it was just a license in the queue and a shell. Today, we have built it into a purpose-built 52,000 sq ft hub for innovation, vape manufacturing, and a driver of everything non-flower and even some flower product development and innovation. Out of this facility, we have launched hundreds of new SKUs. We have had five years of industry-first-to-market category-defining innovations from the one-gram vape all the way to our new all-in-one that we launched 18 months ago.
We've shipped over 26 million units out of this facility since legalization. This facility has produced the KIND 2024 Innovation of the Year. Since its inception, it has been fully licensed for processing and sales. Importantly, we have a full analytical lab in-house as well as a full sensory study license for research and development. Really, when you think about our two assets, Auxly Charlottetown is advanced manufacturing for 2.0 products and all things R&D and product development. Switching to Auxly Leamington, this is our 1.1 million sq ft cultivation facility. We built this from scratch, highly automated greenhouse, advanced lighting, temperature, humidity control really allows the delivery of consistent, high-quality cannabis where we believe are industry-leading costs and quality. We have over 200 genetics in our genetic library and are constantly testing and finding that new and exciting strain to meet ever-evolving consumer demands.
Our current annual production capacity is 100,000 kg. That is our, as of mid-last year to late last year, that is our current run rate. We do have ability to continue scaling. We are a GACP, so CUMCS for international export, and in the process of getting EUGMP packaging capabilities in Leamington as well. In addition to the flowering space, we also have 250,000 sq ft of built-out expansion space. Whether it is manufacturing, whether it is a 3PL, whether it is indoor cultivation, it is all there with the ability to expand. We have built on 40 acres. We sit and own 100 acres on the land that we are on. As Hugo said, we are just getting started. Some of our success pillars here that we stand by and the strategy we are driving into 2025 and beyond.
First and foremost, we're going to continue innovating and creating and producing products that consumers trust and love. It's been our motto from day one. We take it very seriously. For us, that means innovation leadership. It means an efficient portfolio. It means to continue winning consumer-focused and customer-focused awards that are meaningful and continue leadership in the fastest and largest growing categories. We're going to remain efficient and profitable. I've heard it today. Top line is one indicator. We're really driven on profitability and our margin. Investments in automation and continuous improvement across all of our facilities and our processes are incredibly important to us. We believe we have the winning assets and capabilities, and we're going to remain in pole position with those assets. We're going to continue strengthening our financial position.
I'm going to stop and pass it over to Travis because I'm definitely over time. Thank you, everybody.
Thanks. Next page, please. Thanks, Mike. Okay. I am pleased to share our financial results for the trailing 12-month period ending September 2024. Revenue reached CAD 114 million, a 13% increase over 2023, driven by higher sales volumes in our core product categories. In dried flower, successful new genetics, including Liquid Imagination and Fire Breath, helped grow market share in flower from 3.9% in Q4 2023 to 4.5% in Q3 2024. In pre-rolls, our investments in automation are paying off, increasing volume while maintaining quality. We did in 2024 expand our Back Forty product line to include the 0.75 gram straight cut and infused pre-rolls. In vapes, the late 2023 launch of our all-in-one did expand the disposable vape category and has helped drive incremental volume.
Looking ahead, we are committed to strengthening our leadership position in our core categories and will continue to expand distribution and strengthen our retailer relationships. On the gross margin side, product mix shifts and operational efficiencies helped drive our gross margin from 34% to 42% on a TTM basis 2024. Higher cultivation yields did lower our costs. Efficiency improvements at our Auxly Charlottetown facility further reduced overhead. Contract manufacturing agreements for certain cannabis 2.0 products also helped drive cost efficiency. SG&A expenses declined to CAD 36.1 million, a 7% decrease from 2023. Our streamlined operations have led to reduced wages and lower admin costs. Adjusted EBITDA improved CAD 18 million on a TTM basis and net loss was CAD 75 million, primarily due to non-cash impairment charges and asset settlements. Excluding these one-off one-time items, net loss would have been CAD 25 million on a TTM basis.
We did end the most recent quarter with CAD 19 million in cash, CAD 264 million in total assets, and CAD 57 million in total debt. We have in 2024 reduced our total debt by 54% and successfully refinanced our debt facilities. I will maybe move on to the next page. Okay, great. This is a nice visual showing our historical performance, demonstrating our track record to grow profitably. On a TTM basis, we did generate CAD 21 million in operating cash flows, about a 160% increase from 2023. I'll close on the next page. We have built a strong foundation for continued growth by delivering trusted, consumer-preferred brands, driving efficiency and profitability, leveraging our winning assets and capabilities, and strengthening our financial position. With that, I would like to open this call for questions.
Great. Thank you so much to everyone.
I'm going to start off with my first question here on 2025 and the year ahead. Obviously, Auxly is coming off a transformative year for the business. There has been exceptional progress on improving the company's balance sheet while simultaneously delivering much stronger financial and operational results. What is the company's primary objectives in 2025 as it relates to growth and maintaining this momentum that you saw in 2024?
Yeah, I think some of the themes we talked about, but I think if I could summarize it, really is that commitment to profitable growth through focused innovation, expanded distribution, and enhanced efficiency. I think those three items really are going to drive our execution in 2025.
Great. Maybe my next question here would be on Imperial Brands, just maybe to dig at that a little bit. They've been a very supportive investor and strategic partner to Auxly .
They're also a very large and very successful global, fast-moving consumer goods company. How has this relationship and how can this relationship help Auxly achieve its vision strategy of being a global leader in cannabis products in the future?
Yeah, Andrew, I'll take that one. Just a reminder to the audience, Imperial Brands is our strategic partner. Last year, they converted CAD 123 million of debt into 19.9% of our equity, which I think reflects their confidence in our ability to navigate and thrive in challenging markets and build brands and products and know-how that can eventually be exported to their key markets. I think, as you mentioned, Imperial is a truly global company operating in approximately 120 countries worldwide, many of which they've been operating for generations. They have deep market understanding, established infrastructure, large boots-on-the-ground sales teams.
Then some of their key markets, like Germany, the U.K., Australia, United States, are also key international jurisdictions that are growing and evolving towards broader legalization. Look, we look forward to building on our great relationship as we start to advance towards our vision and take steps in those markets where their deep regulatory and commercial expertise and their capabilities can be very helpful to help us take more meaningful steps in those markets and with greater assurance when we do decide to enter. Hope that helps.
Yes, that's excellent. Thank you very much for that, Hugo. Unfortunately, in the interest of time, I think we'll probably have to leave that there. I want to thank the Auxly team, Hugo, Mike, Travis. Thank you so much for joining us today. Thank you for your presentation. Congrats on a transformative year for the business.
Again, to the audience, this is Auxly Cannabis Group, ticker symbol XLY on the TSX exchange here in Canada. Thank you again.
Thanks, Andrew. Thank you.
Our final presenter today is Rubicon Organics. I think it's fair to say that no one does BC Bud quite like Rubicon. Following a near sweep of the 2024 KIND Awards, where Rubicon won such awards such as Brand of the Year, Best Flower, Best Vape, and Best Edible Product, among others, Rubicon has repeatedly demonstrated its commitment to deliver a premium cannabis experience to consumers. Leveraging its organic certified cultivation facility in Delta, B.C., the company has expanded its brand reputation and has become a leading supplier of ultra-premium and premium cannabis products across the country.
The company recently launched its first-ever vape product, received key certifications needed for international exports, and announced the acquisition of an additional cultivation facility in Hope, B.C., all in recent months. Very pleased to introduce CEO Margaret Brodie. We'll speak more to the company's plans for 2025 and beyond. Margaret, please go ahead.
Thank you, Andrew. Good afternoon, everyone. Thanks for giving me the last word today. I'll take it. Look, I share a lot of the themes of the current opportunity in Canada for winning companies. Today, I'm going to demonstrate why Rubicon Organics offers a compelling valuation upside regardless of industry. Our leading brand positioning, strong and improving profitability, and our recently announced acquisition put us in an ideal spot for growth. Today, we are the world's largest scaled organic certified cannabis company, and we deliver consistent premium products.
My vision is simple: for Rubicon to be the most trusted and admired house of premium and super premium cannabis brands in Canada and beyond. We are setting the standard for exceptional quality and value, not only for our consumers, but also for our investors. Themes you'll hear from me today: proven growth. Our track record of success shows we know how to grow and scale our business. Strategic foundations. Over the last two years, we have done the work and built a strong foundation for sustained growth. Significant expansion. Our recent acquisition increases our capacity by over 40% for our at-capacity brands, offering us a low-cost growth opportunity. Exceptional brands. We have built strong customer relationships and are laser-focused on ensuring our brands are front and center on shelves. Who is Rubicon Organics? For those who don't know, a few key highlights.
We're Canada's number one premium licensed producer with over 6% market share in the premium segment. Our success is attributed to two critical areas. Firstly, from day one, we've been committed to delivering consistent, high-quality products that win over our consumers and budtenders alike. Our focus is on quality through every part of the process, from cultivation to product development to how our people show up in store. It's absolutely essential when you're competing within premium and super premium categories, and it's made us a leader in the industry. Our team has deep cannabis experience coupled with a long history in the competitive CPG industries. We're focused where we can outcompete and win rather than trying to be everything to everyone. As Andrew kindly mentioned in the 2023 KIND Awards, the Oscars of Canadian cannabis voted on by budtenders, not the industry, but budtenders.
Rubicon Organics won Company of the Year and the written-in People's Choice Best Weed. Just in December in 2024, we dominated, winning across multiple categories, including Brand of the Year, Flower of the Year, Vape of the Year, and eight others. We are now in our third year of profitability and have proven that our leading brand platform provides an incredibly strong foundation to launch new products. To that end, in 2023, we launched the first-ever live rosin edibles in the Canadian legal market. We quickly captured 30% share in the premium edibles market. In 2024, our vape launch has also leveraged our leading brand strength, where we went from a standing start in May to over 55% distribution nationally. That was just for the September 30th announcement.
While we also won Vape of the Year, Product of the Year, New Product of the Year at the KIND Awards, we expect to continue to see strong growth in the vape segment. It holds about 16%-17% of total cannabis market now. In the U.S., it's closer to 30%. We are going to see more growth in that market, and Quebec is coming online in late 2025. We also now have five SKUs in market and expect in 2025 this could generate growth over 20% of our 2023 net revenue. Our successful product launches are a result of focus on and in the ability to deliver leading quality products. In a market where the consumer can't see what's inside the package, we have a lot of consumers being let down, and they've lost a lot of trust in brands.
We believe that our consistent best-in-class quality is delivering a brand trust and promise. This is evidenced in our new product launches. We have proven our quality reputation is allowing us to enter new categories and win. It is not just winning through the first opportunity to try something new. It is the repeat purchase that we can get. Why is this successful in vape? Premium vape is only as good as the flower inputs that we create quality in, quality out. Our vapes use our best-selling and consumer-loved strains. We are able to quickly demonstrate high quality to consumers. Enough about vape. What else do we do? We have Canada's number one wellness brand with Wildflower, around 30% share of the topicals market. Wildflower is at a higher price point, and we have a relatively lower SKU count to our competitors.
It is about the consistency of a premium quality product that is winning in market. It is our view that Rubicon brands are strategically positioned to win high-value in addition multiples, typically seen for premium leaders in analogous industries, namely with CPG. Look, in the last couple of years, it has been quiet and down cannabis markets, as we all know. Rubicon has been focused and disciplined to build our business and lay foundations for what we believe is to come. Why Canada? The market is finally experiencing the long-anticipated shakeout, accelerated by non-competitive operators choosing to move their business internationally into markets where profit and success is easier to achieve. You have heard that from several teams today. However, initially, Canada was marked by inconsistency, low-quality products, overly broad distribution, and many consumers returned to the legacy market.
That landscape is finally changing, and we're seeing three large themes emerge. Firstly, in a significant improvement in product quality, but there's still a large gap from value to the premium segment and a large amount of inconsistency experienced by consumers when they go to buy product and what they experience with it. Secondly, provinces are streamlining their SKU counts based on operator reliability and rate of sale, making it harder to get products on shelf. Lastly, consumers are growing more consistent with their choices, and brand promises are starting to emerge, offering them trust of value for money. Looking to the future, we expect increased barriers to entry, and it's going to get more difficult to get on shelf, and the strongest brands will survive. Our brands are strategically positioned to thrive in this new environment.
With our brand strength, consumer affinity, and high supplier ratings, we ensure that we remain competitive and relevant. Those who know me know I'm nothing if not competitive. This is a time when brands that will be on shelf over the next 30 plus years are being built. We've seen the cannabis industry go through the classic hype curve. We talked about it earlier. Highs followed by a low, and now we're witnessing a resurgence of the winners as the market matures. This time, we believe the cannabis curve will be a lot steeper and more sustainable thanks to growing demand both domestically and internationally. We're already starting to see wholesale prices increase driven by a tight supply market. Some of our peers are beginning to increase price on their products, but we haven't yet seen that in the premium segment.
International is opening up, and we expect tremendous international demand growth. We've discussed this before, and I've certainly said it, that cannabis legal market is still in the early stages. We've seen impressive growth, but we're still scratching the surface. It's estimated 30%-40% of cannabis buyers are still purchasing from the legacy market, and a new generation of consumers are entering. We expect them to purchase legal cannabis. In 2025, Quebec will allow non-flavored vape products, bringing a new consumer group into the legal market, and it presents a big opportunity. We're also seeing demand internationally, and as these markets come online, there is significant supply shortage, and it will take some time for other countries to be able to get supply online. We're well positioned to capitalize on this in premium, and in particular with our planned acquisition and our premium operational know-how.
Look, cannabis is accretive to Canada's GDP. It isn't impacted by the same trade wars affecting other industries, and our export customers are not reliant on the U.S. Despite a challenging market over the last few years, we've outpaced industry growth, and we expect that to continue. Through our Hope acquisition, which I'll talk about shortly, we've increased our capacity by over 40%. This, combined with our long-term third-party supply agreements, will help us meet growing demand. We're increasing our market share in the vape category with our 55% distribution in the six months following launch. As I mentioned, Quebec vape is just opening up in Q4 of 2025. Our edibles portfolio is growing rapidly with 185% year-on-year growth last year and since launching our new-to-market live rosin edibles across both 1964 and Simply Bare. Our leading genetics are very exciting.
We have released several high-performing flower SKUs last year in 2024. With several of our current leaders, we're actually new launches, and we have a lot more to come. You're going to hear more from Rubicon about that in the future. We have also received our GACP certification and are preparing for our first international shipment this quarter. I will speak to that shortly. Most importantly, turning to supply growth plans, we have a 125,000 sq ft facility in Delta, B.C . It's already producing some of Canada's best premium cannabis and is the only scaled organic cannabis operator in the country, but we're expanding further. Last week we announced a planned acquisition in Hope, B.C , which brings incremental 41% capacity for just CAD 4.5 million purchase price. It's an incredible strategic purchase.
As it will cost significantly more to build that today, and it will be fully on the facility and all the real estate, allowing a stronger balance sheet and future optionality for Rubicon. Due to our desire to have more control over our supply chain and because our demand for our leading brands requires additional capacity, Hope will allow us to grow our footprint and our production capacity by about 4, excuse me, 4,500 kilos, bringing us to 55,000 kilos of premium production. The facility was the first licensed facility in B.C. It is just an hour and a half from our existing Delta facility, and it means our existing team can get out there and get it performing and pumping quickly, with first harvest expected in 2025.
I'd note that the former owners had disclosed production capacity of 6,900 kilos, but we pride ourselves on under-promising and over-delivering, and we have a track record of doing that, and we want to execute on our promises. I'm confident that this new facility will continue that tradition. This expansion will meet unmet demand in Canada and allow us to open up international channels. In 2025, we're testing routes to market internationally, and this acquisition is a key step in positioning for future growth. I should put an aside there that, look, Rubicon is satisfying and committed to our domestic Canadian business first. Our positioning is unique. The market is changing. We've heard that today. Many smaller and craft premium companies are struggling to maintain consistent national shelf space and are pivoting out of the Canadian market into international markets, taking their brands off shelf domestically.
As SKU rationalization continues, only brands with strong, consistent supply chains will stay on shelf. Furthermore, it's difficult to get SKU listings with the provinces, and it will only become more so with further expected SKU rationalization and more sophisticated KPI-based purchasing strategies. We fully own our facilities, which gives us greater control over our supply chain, and this positions us to weather supply chain disruptions to stay on shelf and keep meeting consumer demand, building brand. On the competitive advantage side, in the next slide, I'll talk about our premium portfolio. First, brand loyalty. What you will see is Simply Bare and 1964 rank in the top five brands for the last two years, most recommended by budtenders as done by third-party surveys. We won huge at KIND, voted on by budtenders, and they are our most discerning customers.
As for profitability, we've delivered two years of positive adjusted EBITDA, and we're on track to achieve the same in 2024. That is our one-time ERP costs, which we incurred last year intentionally to get our business ready for growth. We focus on high-margin premium products, but we work to get the right product on shelf at the right quality, and now we are focused on the cost base and improving margin. That will be a story for us in 2025. We've led the way with creating new and exciting genetics that appeal to premium consumers with 14 genetics launched in the last 12 months. We're constantly innovating with a strategy to be best to market, although sometimes that is first to market, like in our live rosin and edibles. If you're not familiar with our brands, let me introduce them.
Simply Bare Organic, our super premium brand, focused on delivering the highest quality cannabis to the most discerning consumers. 1964, a premium brand inspired by Legacy Genetics , designed to appeal to both legacy and new consumers. Wildflower, the number one wellness brand in Canada, specializing in CBD topicals and products that promote holistic health. It is a premium product with a smaller SKU count than our competitors, but given the quality of that product, it garners about 30% of market share. Homestead Supply, it is a brand that monetizes products outside our top quality standards while providing customers a great value for quality. We hold around 6% of the premium market in Canada, and our brands are experiencing double-digit growth in B.C., Ontario, and Alberta.
We've demonstrated a proven ability to capture market share in both new and existing segments, and the vape and edible categories are highly competitive, yet we entered them with rapid execution of new product releases with strength and quality of products, and we were able to swiftly bring products to market, maintaining exceptional quality, and it's been a key driver in us capturing more market share, reinforcing our leadership in the premium segment. We're in a quiet period right now on the financials, so you're going to hear more from us in early April, but we continue to show growth. We've already demonstrated consistent growth in revenue through the year to September 30th. We're in a strong position with nearly CAD 10 million in cash and a newly secured five-year debt facility at a highly competitive interest rate of 6.75%. We've been strategic with our capital.
The whole Hope acquisition is a prime example of our opportunistic approach, and I can tell you we looked at a lot of things. We have a tight cap table, 44% insider ownership, and our management team and board are highly incentivized to deliver shareholder returns. Looking at our balance sheet, you'll see that our valuation is extremely low relative to where our business is and our growth trajectory. Look, shelves and brands are being built today in Canada. Controlling your supply in the short term is key to current and domestic international demand.
Now that we've proven we can expand and build on top of Canada's leading premium brand portfolio, we're approaching our next phase of growth with the Hope acquisition. That provides additional capacity in addition to our existing contract grow manufacturing relationships, and we have an open marketplace to continue releasing new flower and product innovation. We believe we're fundamentally undervalued even before the announcement of the Hope acquisition, but given the proven brand strength and our ability to expand our leading brands with additional product launches and segment entrances, we now believe there's even a larger valuation gap that's emerged. The Hope facility increases our capacity over 40%. It allows us to scale and expand our brand expansion strategy.
We plan to deliver improved gross margins with our cost-saving plans, which will go right to the bottom line, and I'll speak more to that when we get to our Q4 results. The last point I should make is on our international expansion plan, which we will undertake in a similar fall, walk, win strategy that we previously executed in flower, then topicals, then edibles, then vapes. Look, it's our view that Rubicon brands are strategically positioned to achieve high valuation models in future akin to similar industries, namely CPG. I want to thank Ventum and everybody for joining today, and hopefully the best was saved for last, and on to questions.
Absolutely. Thank you very much, Margaret, for your presentation. I'm going to start off with the news that's obviously pretty hot off the press.
I want to talk about the acquisition of the new cultivation facility in Hope, B.C., and congrats on that announcement as well. You mentioned that this would represent an increase of about 40% to your cultivation capacity. How would you allocate the cultivation capacity between your own brands here in Canada, maybe between flower and supporting your vape launch, as well as for potentially international opportunities? How will this supply integrate with your various distribution channels for your products?
Great question. Look, similar to what others have said, winning at home is critical, critical for your brands. This facility will not be organic, certainly not at first, and we're going to consider whether that's a direction we want to go.
Therefore, it won't be able to supply into our Simply Bare organic brand, but it will allow us to grow more Simply Bare organic at Delta and expand out that brand, which is our more profitable and premium SKU, and that's exciting as well. In first instance, it's going to move into 1964. We are testing and learning on international. We have unmet demand for both 1964 and Simply Bare here in Canada. I believe it'll go to there first, but we will look to put some of it to international. I don't have the numbers yet. I wouldn't say half, but TBD, and ask that question again in six months.
Great. Maybe I'll poke a little bit more on the international aspect of that because, again, this is fairly hot off the press, Rubicon receiving some key certifications that allow for international exports.
Maybe if you could kind of give us a sense of where do you think the company is going strategically or wants to position itself strategically as it relates to international markets. I think we've heard varying strategies on the call from companies that want to have a significant share of their revenues in international markets versus some that want to be strictly in Canada. Where do you think Rubicon will ultimately go with its international strategy over the coming years?
Personally, I'd love to have a brand in a market, and I'd love to do it sooner than later, but actually, I think some of that is ego talking. Really, what's happened with the U.S. and tariffs and trade wars, etc., go to show that you want to win at home where you're in a safe and protected market.
I think that's some of the risk that you see in the international markets. I don't believe that there is a race to get there. I'm quite happy to let other companies spend their time and money creating those routes to market because we've shown in Canada, we weren't one of the first LPs. We've shown in Canada that premium product, there's a market for it. I don't think we try to be everything to everyone. We're going to learn. We're looking around this year, and then we'll drive forward likely in one market with one team. TBD, we don't have the answer to that yet because we don't want to make assumptions. We still believe that the premium market is not really established in international markets.
We see a lot of people going, assuming that a large individual nug means it's a premium product, but that doesn't speak to smokability, consumer experience, unique genetic, etc. I believe that in two, three years, it's going to be very exciting for premium products internationally, I think, as that market evolves. Right now, I think it's still reasonably small, and it allows us to test and learn, continue to grow in Canada, and I think we'll just have more value then. If you think to what my ambitions would be, it would be to have more capacity, right? More capacity in a market where there is a shortage of supply. Full stop. That's the story
of this year, I believe, in 2025. Great. That is very helpful. Maybe just quickly, one more.
Could you maybe comment on the company recently launched into vape product category in Canada? Could you comment on how that launch has gone for Rubicon and what maybe additional product categories or products we should expect the company to launch in 2025?
I think there's more to come on what we're going to launch in 2025, so I won't speak to that, and I like to keep some of my cards close to my chest. We like to announce when we've got it locked and loaded, and we know we're going to deliver. That's what you've seen with edibles. We hint at something, then we go and we do it. Same thing with vape. The vape launch went very well. We put our strongest people on the project, and we focus on it.
We asked ourselves what is best in market, not what is cheapest from a margin perspective, and then we can work on cost from there. We want to make sure that the channel works and the consumer has the right product quality. I think that is still a tremendous growth area. What we did was best to market. That is our innovation strategy. You are going to see that from us internationally as well. What is next? I think genetics is the biggest story. We have got a few plants growing in the facility right now I am buzzing about. I think some of my colleagues touched on it today, but genetics is a story that the market has not yet figured out the value of. I think it is an opportunity for Canada to win in the world too.
I think it's going to be a very significant growth opportunity for these companies.
Great. Thank you very much, Margaret, for presenting today. Again, to our audience, this is Rubicon Organics, ticker symbol ROMJ, on the TSX Venture Exchange. Thank you very much again, Margaret, for your presentation.
Great.
With that, that concludes our conference. I will just quickly go over some concluding remarks here. I think it's no secret that the Canadian cannabis market has been incredibly challenging. It's been challenging for investors. It's been challenging for the companies who operate in the industry, which have historically been characterized by widespread, intense competition and long-standing oversupply conditions. However, what we just saw today was there exists a group of companies that have profitably navigated this incredibly challenging landscape. These companies that are presented here today have demonstrated consistent growth and market share gains.
They have focused strategies, and they strive for market-changing innovations. With broader industry conditions finally showing signs of stabilization and as international market opportunities rapidly develop, we believe these battle-hardened companies are primed to be leaders in the Canadian and international markets. Moreover, after years of investor fatigue, most of these presenting companies trade at between 4x-7 x annualized run rate EBITDA, also offering attractive valuations for new investors. As Peter highlighted in his prepared remarks, we believe that these companies offer a compelling investment opportunity. Both Peter and myself, as well as the Ventum team, aim to help investors navigate the cannabis industry and provide actionable, insightful investment ideas. I want to thank the audience for attending today. We hope you enjoyed the conference, and we look forward to hosting our next one. That concludes today's conference. You may now disconnect. Have a great day.